Question

Insurers still base auto insurance base rates on pure premium or loss costs; however traditional rating...

Insurers still base auto insurance base rates on pure premium or loss costs; however traditional rating plans are changing. Which one of the following is a newly emerging basis on which insurers can calculate rate relativities?

Actual vehicle usage

Territory in which the car is garaged

Coverage limits and deductibles

Horsepower and value

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Answer #1

c) Coverage limits and deductibles like Zero depreciation , 3rd party.

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